Sunday, 5 June 2016

Something is not right if you still need that cheapo platform after 5 years...

I wanted to say 2 years, but I remembered I was small once too...

But then, I was ikan bilis small, never that itsy bitsy krill small.

I guess that's the advantage of starting my investing/trading journey at age 32?

Unless one is a day trader or trades a lot, come on, there are more important things to worry about than transaction costs!?

Ask your father, uncles, older cousins - how did they survive when our brokerage fees before liberalisation were 1%?

That's right! A round trip would cost us at least 2% - and yet retail contra traders that time can still make money on such trades!?

Of course I would like to pay less for what we buy. But there's a reasonable market price for everything.

If you spot a hawker selling fish ball noodles for $2, at the back of your head, you'll know the fish balls and mee portions would either be much smaller; or the meal would taste so so.

Don't be that clown that pays budget airline prices, but expect SQ level service!

What? Me pour cold water?


Why I'm a cheerleader! (Just don't look at my hairy legs)

To youth, don't you worry. Just as long you continue to grow your portfolio or trading account, your transaction costs WILL come down. There's such a thing called volume discounts.

Don't you forget why you started this journey in the first place. Don't get distracted. (Why does it sound familiar?) 

If after 5 years you're still stuck at the beach (a miracle how you survived for so long), you may want to have a 2nd opinion to double confirm you really are a sea turtle?

P.S.  If you're a commercial blogger or hobbyist with aspirations to morph into commercial one day, don't tell people you using that cheapo platform.... (face palm)

Look at your slick "professional" peers. Take picture must include a pool by landed property (no need to own; borrow from friend can); or include a fancy Continental sports car (car rental anyone?)

Must project "success".

How you expect people to follow a krill? (Eyes-roll) 

Buy me a drink I can be your spin doctor. Throw in a meal I'll call you, "Daddy!"


  1. Quote : "Ask your father, uncles, older cousins - how did they survive when our brokerage fees before liberalisation was 1%? That's right! A round trip would cost us at least 2% - and yet retail contra traders that tome can still make money on such trades!?"

    You har!!!!!

    Telling half the story

    How to make money from contra trading?

    Trade the heavy weight blue chip like OCBC, Creative, etc

    If I remembered correctly

    Those above $10 was $0.20, above $5 was $0.10, above $3 was $0.05 above $1 was $0.02 , below $1 was $0.01

    Can breakeven and made money with fewer bids. Nowadays, contra harder to make money, got to wait for more bidding.

    1. CW,

      Thanks for your testimony!


      The changes to the minimum bid sizes have more impact and savings to retail investors than other "good to have" distractions ;)

      Huh? You contra with blue chips?

      Contra trader who are more "garang" would contra with CLOB and penny stocks! Now that's action!

      Penny stock at $0.10 - 1 tick move = $0.105 - 5% gain!
      2 ticks = $0.11 - 10% ang pao!!! Huat liao!

      It's fun and games until you discover if it goes against you the other way - a 4 ticks move is a 20% hair-cut loss in less than 3 days!!!

      Now with the minimum bid price of $0.20 and new tighter bid-offer spreads, less excitement for contra traders :(

      What's good for retail is bad for remisiers and dealers. And people wonder why SGX turnover down and scratching head HOW to increase retail participation???

      100 shares lot? That won't move the needle lah.

      Its a bit like Singapore Tourism Board targeting backpackers in their business plans. That won't happen unless some serious distraction happens...

      So when will SGX move from T+3 to T+1? Talk for many years; no action. Of course remisiers and dealers will block it!

      That will destroy the contra business totally!!!

      Why SGX not pushing it through like they did with doing away the 1.5 lunch hour break? Align with international norms mah.

      The pin now pricks their own skin? Got KPI on SGX turnover?

      But if brokers don't have to take on credit risks of clients not paying, they can lower their brokerage fees.

      Make a guess why no retail investors pushing for T+1?

      Retail investors also got "distractions"?


  2. There is no free lunch in this world. Even if there is, it won't stay free for long.

    1. Dividend Warrior,


      If I'm a shareholder of that money losing bank, I would want management to keep their eyes on the main prize and not play around with fringe activities that don't move the needle.

  3. Hehe. But all I wanted was $2 fishball noodles. I don't mind the smaller portion, so-so but edible taste or lack of service. As long as I don't go hungry!

    1. Kevin,

      That's perfectly OK too!

      See? You don't need a X amount by Y year financial freedom goal if all we want is don't go hungry ;)

      Let's say we have a financial freedom X amount by Y year goal/dream/fantasy/halluciantion.

      If the Y year target is 65 or 70, OK, its about finishing the Marathon thingy. I can buy that.

      But if the Y year is aimed at 35 or 40 to be financially free, then the numbers don't add up... Especially the transaction volume and portfolio size :(


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